Nathan Duda
About Nathan Duda
Nathan Duda is Executive Vice President and Chief Financial Officer of Mechanics Bancorp (formerly HomeStreet, Inc.) effective September 2, 2025, and previously served as EVP & CFO of Mechanics Bank since June 2016; prior roles include Chief Accounting Officer at Mechanics Bank and senior finance positions at Banc of California, Union Bank, Santa Barbara Bank & Trust, OneWest Bank, and Affinity Bank . He is 47, holds a Business Economics degree from the University of California, Santa Barbara, and is a licensed CPA; he was appointed CFO as part of the Mechanics–HomeStreet merger integration and signed Mechanics Bancorp’s post-merger filings as CFO . Company performance context during HMST’s final standalone years shows volatile TSR and earnings, underscoring the turnaround mandate into the merger period .
Company Performance Context (HMST pre‑merger)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Total Shareholder Return (Value of $100 Investment) | 81.12 | 37.35 | 110.87 |
| Net Income ($USD Thousands) | $66,540 | $(27,508) | $(144,344) |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Mechanics Bancorp (formerly HomeStreet, Inc.) | EVP & CFO | 2025–present | Appointed at merger close; responsible for finance leadership and integration; signed post‑closing 8‑K as CFO . |
| Mechanics Bank | EVP & CFO | 2016–2025 | Led finance since June 2016; previously Chief Accounting Officer . |
| Mechanics Bank | Chief Accounting Officer | — | Pre‑CFO accounting leadership at the bank . |
| Banc of California | Chief Accounting Officer; EVP Finance | — | Senior finance roles prior to Mechanics Bank . |
| Union Bank; Santa Barbara Bank & Trust; OneWest Bank; Affinity Bank | Senior finance positions | — | Various senior positions in banking; built multi‑institution finance experience . |
External Roles
- None disclosed in HMST/Mechanics Bancorp filings for Duda .
Fixed Compensation
| Component | Detail | Date/Term |
|---|---|---|
| Special Bonus | One‑time special bonus of $177,860.86 contingent on closing; payable within 30 days of Closing Date . | Approved prior to merger; paid post‑close . |
| Base Salary | Annual base salary level not disclosed in HMST/Mechanics Bancorp 8‑K/DEF 14A for Duda; CIC references “Annual Base Salary” as basis for severance . | CIC effective Aug 28, 2025 . |
Performance Compensation
| Element | Metric/Weighting | Target | Actual/Payout | Vesting/Payment Terms |
|---|---|---|---|---|
| Change‑in‑Control Severance | Cash multiple based on salary + target bonus | 2.75x (salary + target annual bonus) | Lump‑sum within 60 days of qualifying termination (subject to executed release) | COBRA premiums paid for 18 months; 280G cutback to maximize net after‑tax proceeds; long‑term incentives treated per plan . |
- Performance bonus % targets for Duda (outside CIC) are not disclosed in HMST/Mechanics Bancorp filings .
Equity Ownership & Alignment
- Beneficial ownership (Form 3/Section 16), RSU/PSU holdings, options, and pledging status are not disclosed in the HMST DEF 14A or the September 2, 2025 8‑K for Duda .
- Mechanics Bancorp assumed Mechanics Bank RSUs at a fixed exchange ratio; Duda’s individual grant counts are not itemized in the 8‑K .
Employment Terms
- Title and Appointment: EVP & CFO of Mechanics Bancorp effective September 2, 2025; EVP & CFO of Mechanics Bank since June 2016 .
- CIC Agreement: Effective August 28, 2025; initial term 2 years with automatic one‑year renewals; cannot be non‑renewed in anticipation of a specific potential CIC; term extends to at least two years post‑CIC .
- Qualifying Termination: Without Cause or for Good Reason within two years post‑CIC; also six months pre‑CIC if terminated by the company (other than for Cause) .
- Severance Economics: 2.75x (Annual Base Salary + Target Annual Bonus), paid lump sum within 60 days; 18‑month COBRA premiums; cutback to avoid 4999 excise tax if net after‑tax is higher; no tax gross‑ups .
- Definitions: Good Reason includes material cut to salary/bonus/LTI, significant diminution of duties, relocation >50 miles, material breach; Cause includes fraud/embezzlement, regulatory removal, fiduciary breach, wrongful disclosure, legal violations, material policy violations, refusal to follow Board directives (with cure rights) .
- Post‑Termination Obligations: Confidentiality, non‑solicitation of employees/customers, non‑disparagement, cooperation; arbitration for most employment disputes (Walnut Creek, CA) .
- Special Bonus: $177,860.86 one‑time bonus approved by Mechanics Bank contingent on the merger .
Investment Implications
- Retention risk mitigated by robust CIC protections (2.75x salary+bonus; 18‑month COBRA), strong Good Reason triggers, and assumed equity plan continuity—reducing likelihood of near‑term departure amid integration .
- Alignment signals are mixed: a sizable one‑time bonus tied to closing and no disclosed ownership or guideline compliance data limit visibility into “skin in the game”; however, Duda’s long tenure as Mechanic’s CFO and post‑close leadership continuity support execution stability .
- Governance/compensation risk appears moderated by no excise tax gross‑ups and standard 280G cutback mechanics; arbitration/non‑disparagement/confidentiality provisions suggest sponsor‑backed control discipline typical of private‑equity influenced banks .
- Near‑term trading signals should focus on integration KPIs Duda highlighted publicly (e.g., asset/liability marks and NIM accretion post‑merger), with finance execution affecting earnings quality; Mechanics’ Q3 2025 commentary ties accretion to legacy HomeStreet marks, implying potential tailwinds to interest income normalization under Duda’s stewardship .